FuturesTradingIndia.com

We make NRIs
Grow Financially..!!

PAN Card now Mandatory for: NRIs, PIOs & OCIs..

Permanent Account Number is now
compulsory for anyone who wish to conduct any financial transaction in
India, viz to open a bank account, dmat account, buy shares or real estate, etc.

Want to 0pen an online
Demat Account in India?

We assist Indians living abroad: NRI, PIO & OCI
in setting up online dematerialized accounts with brokers in India through
which NRIs can purchase stocks in the India stock market.

ebook: 'Investing for NRIs'.
Download Now..!!

Use this powerful ebook called: 'Investing
for NRIs' to learn everything about investments and how Non Resident Indians
can invest money in India. Also educate yourself on Indian Stock Markets.

Types of clients weto open Futures Trading Account for:

NRIs - Non Resident
Indians

PIOs - Person of India
Origin

OCIs - Overseas Citizens
of India

Domestic Resident Indians
living in India

Economic Benefits of Futures Trading:

Helpful to all the sectors of the economy, futures contracts primarily
discovers price and manages price risk with respect to a particular
commodity. The producer gets an idea of the price that is likely to be
in the future helping him to decide between various competing
commodities. The exporter, on the other hands, gets to know about the
likely prices of the future and can quote a more realistic price on his
items.

Other advantages of futures trading are:

1.Price
stabilization-in times of violent price fluctuations

2. Leads to
integrated price structure throughout the country.

3.Facilitates
lengthy and complex, production and manufacturing activities.

4.Helps
balance in supply and demand position throughout the year.

5.Encourages
competition and acts as a price barometer to farmers and other trade
functionaries.

However there are safeguards to check misuse of futures trading by
unscrupulous spectators. These are:

Limit on open position
of an individual operator to prevent over trading;

Limit on price
fluctuation (daily/weekly) to prevent abrupt upswing or downswing
in prices;

Special margin
deposits to be collected on outstanding purchases or sales to curb
excessive speculative activity through financial restraints;

Minimum/maximum prices
to be prescribed to prevent future prices from falling below the
levels that are un remunerative and from rising above the levels
not warranted by genuine supply and demand factors.

During shortages, extreme steps like skipping trading in certain
deliveries of the contract, closing the markets for a specified period
and even closing out the contract to overcome emergency situations are
taken.

Prospects of Futures Trading in India:

We can say that the future of futures trading looks vivid in India. In
the post liberalization era, almost all the operators in the commodities
market have felt a need to hedge and transfer their risks. Also, futures
trade is required in India in order to fulfill her WTO obligations
regarding the agriculture sector.